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GVK buys 14% more in B’lore International Airport

20 Oct 2011 Evaluate

Hyderabad-based GVK Power and Infrastructure bought additional 14% stake in Bangalore International Airport (BIAL) from Siemens Project ventures GMBH, emerging as the largest shareholder in the company that manages the Bangalore airport. GVK’s stake in BIAL now stands increased to 43% from 29% after the stake sale. The completion of the acquisition of the additional 14% stake in BIAL helps the company to further consolidate Bengaluru International Airport as the leading airport destination in southern India. The deal values BIAL at Rs 4,384 crore, an 8.6% premium over the price of Rs 105 per share that GVK had paid in 2009 for acquiring the stakes of L&T and Zurich Airport. GVK had resisted doing the transaction on the 2009 valuation, but had to give ground as the prospect of rivals entering the fray appeared imminent. 

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